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Modeling Congestion as a Form of Interdependence in Random Utility Models

Author

Listed:
  • Boxall, Peter C.
  • Hauer, Grant
  • Adamowicz, Wiktor L.

Abstract

This paper develops a theory of interdependent utility functions in examining congestion in recreation demand equilibria. The notion is examined empirically through the development of congestion forecasting functions which individuals use to sort themselves among a set of recreation sites. These forecasts are used in site choice models estimated on revealed preference information. An interesting outcome of this exercise is that recreation site attribute changes, which are projected to provide positive utility, may in fact generate negative utility if the effect of the change on congestion is jointly considered.

Suggested Citation

  • Boxall, Peter C. & Hauer, Grant & Adamowicz, Wiktor L., 2005. "Modeling Congestion as a Form of Interdependence in Random Utility Models," Staff Paper Series 24078, University of Alberta, Department of Resource Economics and Environmental Sociology.
    • Handle: RePEc:ags:ualbsp:24078
    DOI: 10.22004/ag.econ.24078
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    Cited by:

    1. Reeling, Carson & Verdier, Valentin & Lupi, Frank, 2016. "Valuing Natural Resources Allocated by Dynamic Lottery," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235673, Agricultural and Applied Economics Association.
    2. Leplat, Mélody & Le Goffe, Philippe, 2009. "Faut-il réguler l'encombrement des sites récréatifs ? Un modèle de choix discret avec participation," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 90(1).
    3. Christopher Timmins & Jennifer Murdock, 2006. "A Revealed Preference Approach to the Measurement of Congestion in Travel Cost Models," Working Papers tecipa-213, University of Toronto, Department of Economics.
    4. Mélody Leplat & Philippe Le Goffe, 2009. "Faut-il réguler l'encombrement des sites récréatifs ? Un modèle de choix discret avec participation," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 90(1), pages 51-77.

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    Keywords

    Resource /Energy Economics and Policy;

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